Structured Investments in the United States

HSBC Structured Investments provide an alternative or complement to traditional long-only investments, and can offer unique risk-return profiles to address investment objectives, such as risk management, periodic income, and the potential for enhanced returns.

New Tools for a New World

In today's dynamic and ever-changing financial markets, investors face a growing number of challenges in achieving their investment objectives.

How do you successfully:

Manage risk

Generate yield

Gain access to new markets

Diversify your portfolio

Structured Investments can address these common wealth management concerns, helping you stay engaged in the markets and keeping your portfolio working for you.

Within this site you'll find details of past HSBC offerings as well as useful resources to help you better understand the many investment opportunities available to you, how various products work and the risks related to various products.

What are Structured Investments?

A large and growing market

Issued in the form of Certificates of Deposit and registered notes

Enhancements to a traditional asset allocation

Over USD47 billion in issuance in the U.S. in 2013, and over USD208 billion in issuance since 2010.

Source: Structured Retail Products, February 2014

Forego the interest payment on a traditional bond in exchange for a market linked return

Use them as a complement or alternative to traditional stock and bond holdings

Why use Structured Investments?

Structured Investments allow you to access the potential of the markets in a way that suits you.

Yield enhancement

Risk management

Potential outperformance

Potential to earn above-market interest payment in a low interest environment, as compared to traditional fixed income investments

A depositor, frustrated with the low yields on traditional CDs, seeks the potential to earn a higher return while getting the FDIC protection offered by a CD. He purchases a Market-Linked CD tied to a broad US equity index that provides a small minimum interest payment each year as well as the potential for a larger payment at maturity based on the performance of an underlying index.

Like a traditional CD, it will repay the original amount invested at maturity, subject to issuer credit risk, and is eligible for FDIC insurance up to statutory limits. Redemption prior to maturity may result in loss of principal.

A retiree who is generally bullish on international equity markets but concerned about potential loss of principal purchases a Note linked to a basket of global equity indices.

At maturity, the Note provides for repayment of principal, subject to issuer credit risk, as well as degree of upside participation in the underlying basket of indices. Redemption prior to maturity may result in loss of principal. Index-Linked Notes are senior unsecured debt obligations of the issuer, HSBC USA Inc.

An investor is interested in participating in the potential growth of emerging economies but is also concerned about entering into new and unfamiliar markets without any downside protection.

He purchases a Buffered Accelerated Market Participation Security linked to a broad emerging markets equity index that provides for a degree of downside protection and also leveraged upside participation, subject to a maximum return cap and the credit risk of the issuer. Redemption prior to maturity may result in loss of principal. Index-Linked Notes are senior unsecured debt obligations of the issuer, HSBC USA Inc.

When choosing an issuer, size and strength matter

With assets totalling USD2.634 trillion as of December 31 2014, HSBC is one of the world's largest banking and financial services organizations and its truly international network of approximately 6,100 offices spans 73 countries and territories across the globe.

Market Capitalization in USD billions

HSBC's global presence

Source: Bloomberg, as of December 31, 2014

HSBC in the US

HSBC structured investments issued in the U.S. are backed by either HSBC Bank USA, N.A. or HSBC USA Inc., both of which are wholly owned subsidiaries of HSBC Holdings plc and have the following credit ratings*:

S&P

HSBC Bank USA, N.A.

HSBC USA Inc

Long Term Local Issuer Credit Rating

AA-

A

Fitch

HSBC Bank USA, N.A.

HSBC USA Inc

Long Term Bank Deposits Rating

AA-

n/a

Senior Unsecured Debt Rating

AA-

AA-

Moody's

HSBC Bank USA, N.A.

HSBC USA Inc

Issuer Rating

Aa3

n/a

Long Term Bank Deposits Rating

Aa2

n/a

Senior Unsecured Debt Rating

Aa3

A2

Source: Bloomberg, as of May 2015

*A credit rating reflects the creditworthiness of the respective entity and is not indicative of the market risk associated with any investment nor is it a recommendation to buy, sell or hold any investment, and it may be subject to revision or withdrawal at any time by the assigning rating organization. Each rating should be evaluated independently of any other rating.

HSBC Structured Investments Team

With an emphasis on superb client service, HSBC's Structured Investment platform is built on a multi-asset class offering (equities, FX, rates, and precious metals), and a focus on leveraging HSBC's strong and unique global reach into domestic, international, and emerging markets.

Our one-stop-shop approach means that our large team of experienced sales professionals will work with you to help you understand the benefits and risks of our offerings – offerings that span across asset classes and come in the form of vehicles like: Certificates of Deposit, Registered Notes, or Medium Term Notes.

Risks Related to Investing in Structured Investments

Investing in our Structured Investments involves risks. You should consider carefully the risks and all of the information contained in or incorporated by reference in the relevant offering documents for the Structured Investments before deciding whether to purchase any Structured Investment. In addition, you should carefully consider, among other things, the matters discussed under 'Risk Factors' in HSBC USA Inc.'s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and in other documents that it subsequently files with the SEC.

Advisor Center

Dedicated to Helping You Build Your Business

Providing you with resources to complement your investment practice and help you answer your clients' questions. You will find:

The returns on HSBC structured investments are linked to the performance of various market measure underliers. Investing in a structured investment is not equivalent to investing directly in the underlier. Before investing, clients should carefully read the offering documents for the specific issuance, which will explain the terms of the issuance as well as the risks related to the issuance. An investment in structured investments involves risks. These risks will depend on the terms of the specific issuance and the nature of the underlying market measure and could include: fluctuations in the price, level or yield of the underlier, changes in interest rates, currency values or credit quality, substantial or complete loss of principal, limits on participation in appreciation of the underlying instrument, limited liquidity, exposure to HSBC credit risk and certain conflicts of interest.

HSBC operates in various jurisdictions through its affiliates, including, but not limited to, HSBC Bank USA, N.A. and HSBC Securities (USA) Inc., member of NYSE, FINRA and SIPC.

HSBC has filed a registration statement (including a prospectus, a prospectus supplement and an equity index underlying supplement) with the SEC for the securities offerings to which this document relates. Before you invest, you should read these documents in that registration statement and other documents HSBC has filed with the SEC for more complete information about HSBC and those offerings. You may get these documents for free by visiting EDGAR on the SEC’s web site at www.sec.gov. Alternatively, HSBC Securities (USA) Inc. or any dealer participating in this offering will arrange to send you these documents if you request them by calling toll-free 1-866-811-8049.